Alligator Energy And 2 Other ASX Penny Stocks To Watch

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Australian shares are facing a challenging start to the week, with ASX 200 futures indicating a potential decline as investors navigate the final days of the February reporting season. In such uncertain market conditions, identifying stocks with strong financial foundations is crucial for those seeking potential growth opportunities. While the term "penny stock" may seem outdated, these smaller or newer companies can still offer surprising value and stability; we explore three such stocks that demonstrate promising financial strength in today's article.

Top 10 Penny Stocks In Australia

Name

Share Price

Market Cap

Financial Health Rating

Embark Early Education (ASX:EVO)

A$0.79

A$144.95M

★★★★☆☆

Perenti (ASX:PRN)

A$1.16

A$1.07B

★★★★★★

Austin Engineering (ASX:ANG)

A$0.45

A$279.07M

★★★★★☆

IVE Group (ASX:IGL)

A$2.34

A$362.44M

★★★★☆☆

GTN (ASX:GTN)

A$0.54

A$106.04M

★★★★★★

Helloworld Travel (ASX:HLO)

A$2.05

A$333.78M

★★★★★★

Southern Cross Electrical Engineering (ASX:SXE)

A$1.745

A$461.15M

★★★★★★

Bisalloy Steel Group (ASX:BIS)

A$3.21

A$153.77M

★★★★★★

Dusk Group (ASX:DSK)

A$1.03

A$64.14M

★★★★★★

EZZ Life Science Holdings (ASX:EZZ)

A$2.00

A$94.35M

★★★★★★

Click here to see the full list of 1,034 stocks from our ASX Penny Stocks screener.

Here's a peek at a few of the choices from the screener.

Alligator Energy

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Alligator Energy Limited is involved in mineral exploration activities across Australia and Italy, with a market cap of A$127.83 million.

Operations: The company's revenue is derived entirely from its Mining and Exploration segment, amounting to A$1.11 million.

Market Cap: A$127.83M

Alligator Energy Limited, with a market cap of A$127.83 million, is pre-revenue and focuses on mineral exploration in Australia and Italy. The company has no debt and its short-term assets significantly exceed both short-term and long-term liabilities, indicating strong financial stability. Despite being unprofitable with a negative return on equity of -5.24%, earnings are forecast to grow substantially at 64.69% annually. The management team is experienced, averaging 6.8 years in tenure, contributing to strategic continuity as highlighted by recent presentations at industry conferences in February 2025.

ASX:AGE Financial Position Analysis as at Feb 2025
ASX:AGE Financial Position Analysis as at Feb 2025

Djerriwarrh Investments

Simply Wall St Financial Health Rating: ★★★★★★

Overview: Djerriwarrh Investments Limited is a publicly owned investment manager with a market capitalization of A$822.80 million.